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The Inquiry was set up last year in response to the infamous News of the World phone hacking scandal.

On Tuesday, James Murdoch was under scrutiny.

He's the son of media mogul Rupert Murdoch, whose News Corporation owns the Wall Street Journal and the Fox Network, among many other news outlets.

Murdoch gave testimony about the relationship between News Corporation and government officials, and said that he and British Prime Minister David Cameron had discussed the company's bid to take over BSkyB, a British television channel.

Rupert Murdoch will appear before the inquiry on Wednesday.

Marco Werman talks with the BBC's Rob Watson, who has been covering the day's events, to find out more about the significance of this inquiry.